Exploration efforts pick up steam in Argentine camp

A volcanogenic massive sulphide prospect in Argentina’s Tierra del Fuego district appears to have captured the interest of Noranda Minerals.

The company, a unit of Noranda (TSE), has secured rights to earn a 60% interest through an agreement with Minera Yamana, a Vancouver-based junior exploring several properties in the South American country.

Richard Walters, Yamana’s vice-president of exploration, says Tierra del Fuego represents a new exploration play in a region with tidewater access. The junior’s 750-sq.-km land position locks up the entire prospective belt of volcanic rocks.

Yamana and Noranda Minerals plan to form a joint venture to explore and develop the prospect. A dual-phase exploration program is planned, which would involve diamond drilling of an exhalative sulphide zone 1.5 km long and simultaneous reconnaissance of hydrothermally altered bimodal volcanics extending for more than 100 km of strike length.

The drilling will test outcrops of massive sulphides that yielded surface assays in the range of 1.5% copper, 2% lead and 7.5% zinc, plus important precious metals credits, over a thickness of about 3.5 metres. The reconnaissance program will follow-up other previously identified mineralized sites and anomalies in stream sediments.

Noranda will incur all costs to prepare a bankable feasibility study for a 60% interest. At that time, Yamana can opt for either a 40% participating interest or a 30% interest carried through to production.

Noranda Minerals agreed to subscribe for 1.2 million Yamana shares at $1.35 per share for proceeds of $1.6 million. The major can maintain its equity interest in Yamana based on its interest at the time of a business combination between Yamana and Wiscan Resources (TSE). Details of this proposed amalgamation were announced several months ago (T.N.M., Sept. 12/94). Noranda will also have the right of first offer for the sale of any property interest currently held by Yamana, including the recently acquired Mendoza sulphur concession. Lance Tigert, treasurer of Noranda Minerals, will join Yamana’s board of directors.

Several mining companies are active in Argentina, with much of the work geared towards finding gold and copper-gold prospects similar to those being exploited in neighboring Chile.

Two Vancouver-based juniors, Eldorado (TSE) and HRC Development (VSE), have started a second phase of exploration on the Andes project, along the Chilean-Argentine border. The project is held equally by both companies. The US$1.2-million program will test six high-priority targets outlined during the previous program. The geology of the project area is believed to be similar, in some ways, to rocks hosting epithermal and porphyry gold mineralization in neighboring Chile, along the Maricunga and El Indio metallogenic belts.

Eldorado and HRC are reviewing proposals from companies interested in their Andes project, and have engaged First Marathon Securities to act as their financial adviser.

Paramount Ventures & Finance (VSE) plans to acquire three concessions in Argentina. One block, situated in Salta province, features a known sandstone structure estimated at 5 million tons grading 1% copper and 22 grams silver per ton. The other prospects are in San Juan province. Historically, mining here has focused on high-grade veins; the potential for bulk-tonnage, low-grade mineralization has not been investigated.

Argentina Gold (VSE) is also busy exploring ground in Argentina, including the gold project known as La Poposa, in San Juan province (and on the geological continuation of El Indio belt).

A 5,000-metre program of drilling is to begin shortly in an effort to test vein systems discovered during trenching. Results from that work include 136 metres of 0.6 grams gold per tonne (0.02 oz.); 130 metres of 1.4 grams (0.04 oz.) gold; 280 metres of 1.02 grams (0.03 oz) gold; and 72 metres of 13.22 grams (0.39 oz.) gold. Within the 72-metre sample is a 60-cm vein containing 1,000 grams per tonne (29.17 oz.) visual gold that was not included in the average grade reported.

Argentina Gold holds a 60% interest in the Valadero gold project, also in San Juan province, which is being jointly explored by that company and American Barrick Resources (TSE).

The program will test seven alteration zones, covering 14 sq. km.